Grounds for application and forfeits

The Civil Code of the Russian Federation establishes in article 330 the notion of a penalty, according to which, it is understood as the amount strictly specified by law (or the money range) that is payable by the debtor to the creditor, in case of late fulfillment of any obligation or in improper performance of duties that are provided for by labor or civil -practical agreement.

In accordance with this definition of the concept, the essence of the penalty is that the law determines a certain amount of money paid regardless of the amount of damage caused, and even in cases where the damage is not caused at all. The latter circumstance concerns the violation of the deadlines for the fulfillment of obligations under the labor agreement.

The penalties, fines and penalties established by the law are one of the few ways of property liability of persons or organizations for violation of contractual obligations. In addition to the amounts, the law also defines specific types of penalties and grounds for which these sanctions can be applied. For example, it should be borne in mind that the list of these reasons is much narrower than the one used in determining sanctions when bringing to justice in the form of damages. The simplest application of this sanction is the fact that the contractual obligations were not properly executed.

In view of the variety of forms of liability for which a penalty can be applied, the law classifies the types of penalties on the following grounds, which are objective criteria that determine the delineation of these regulatory forms.

So, depending on the order of establishment, legal and contractual penalties are singled out. The first is determined by law and is objective in nature, that is, its parameters can not be changed by the parties. The contractual agreement is established as a result of an agreement between the parties to the transaction. The law applies in cases where the contract did not provide for it as a form of authorization for its violation. The only exception to this rule is the right of the parties to stipulate in the contractual agreement the amount of the penalty exceeding that established by law.

All types of penalties are a statutory measure of civil liability, because the reasons for its occurrence almost coincide with those grounds for the occurrence of liability, which are prescribed in the Civil Code of the Russian Federation. In the event that the contract or a specific law does not contain precise instructions on the reasons and grounds for bringing to justice, it is possible to go to court.

As sanctions, all existing types of penalties can be combined with other types of liability, primarily with reimbursement. In this case, the law provides for the classification of penalties on the following grounds:

1. The forfeit entitles the creditor to demand, in addition to the payment of the forfeit itself, and compensation for damages, if any, in the manner prescribed by law. As a rule, such a measure is used in cases where the amount of the penalty is much less than the losses incurred and does not cover the damage.

2. Penalty entitles to claim full compensation for damage, not only by the amount of the difference between damage and forfeit, but also over it. As a rule, such sanctions are applied for the most significant violations that entailed serious consequences.

3. In the event that the right to recover damages to the creditor is refused, an exceptional penalty is applied.

4. And, finally, the alternative penalty gives the right to choose the creditor, which type of sanction to choose-penalty or compensation for damages.